Best Buy (BBY) Q1 2026 Earnings
How Did BBY Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: +4.68%.
Did BBY Beat Earnings? Q1 2026 Results
Yes. Best Buy reported Q1 2026 earnings of $1.15 a share on May 29, 2025, beating the $1.09 consensus estimate by 5.0%. Revenue was $8.8B against a $8.8B estimate.
Best Buy delivered a mixed first quarter for fiscal 2026, posting adjusted diluted EPS of $1.15 against a consensus estimate of $1.0948 — a 5.04% beat — while revenue of $8.77 billion came in just short of the $8.82 billion Wall Street expected, falling 0.9% year-over-year. The profit outperformance was partly overshadowed by $109 million in restructuring charges tied to Best Buy Health, which widened the gap between GAAP earnings of $0.95 per share and the adjusted figure. On the top line, a 0.7% comparable sales decline in the Domestic segment — a meaningful improvement from the 6.1% drop a year ago — reflected strength in computing and mobile phones, offset by weakness in home theater and appliances. <a href="https://247wallst.com/investing/2026/03/03/best-buys-leaner-cost-structure-drives-post-earnings-rally/">Services and membership growth</a> helped lift domestic gross margins by 10 basis points. Looking ahead, the company trimmed its full-year revenue outlook to $41.10 billion–$41.90 billion and narrowed adjusted EPS guidance to $6.15–$6.30, citing tariff pressures while assuming no material shift in consumer behavior — a caveat that sent shares down roughly 8% following the report.
- Computing and mobile phone categories drove 5.8% domestic comparable sales growth
- Domestic online revenue increased 2.1% on a comparable basis
- Services category including membership offerings improved gross profit rate
- Home theater, appliances, and drones were largest drags on comparable sales
- Best Buy Health business caused rate pressure on gross profit and incurred restructuring charges
- Lower profit-sharing revenue from private label and co-branded credit card arrangement
- International segment impacted by approximately 450 basis points negative foreign currency effect
- Favorable indirect tax settlement reduced domestic adjusted SG&A
“I'm proud of how our teams have been navigating the environment and planning our business within dynamic macroeconomic conditions. Against this backdrop, we executed well in Q1 and delivered in-line revenue and better-than-expected adjusted operating income.”
Best Buy CEO, on the earnings call
What Was Best Buy's Outlook in Q1 2026?
Best Buy updated FY26 guidance to reflect tariff impacts: revenue of $41.1B–$41.9B (down from $41.4B–$42.2B), comparable sales of -1.0% to +1.0% (down from 0.0%–2.0%), adjusted operating income rate of approximately 4.2% (down from 4.2%–4.4%), adjusted diluted EPS of $6.15–$6.30 (down from $6.20–$6.60), and capex of approximately $700M (from $700M–$750M). The adjusted effective tax rate remains approximately 25.0%. For Q2 FY26, the company expects comparable sales to be slightly down year-over-year and an adjusted operating income rate of approximately 3.6%. Guidance assumes tariffs stay at current levels and no material change in consumer behavior from recent trends.
BBY YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $8.8B | $8.8B | −0.9% |
| Gross Profit | $2.0B | $2.1B | −0.7% |
| Operating Income | $219.0M | $327.0M | −33.0% |
| Net Income | $202.0M | $246.0M | −17.9% |
BBY Revenue by Segment
BBY Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.